Jump to content
House Price Crash Forum
LuckyOne

The Anatomy Of A Liar Loan .....

Recommended Posts

In fact, they say the group was part of a plan to reduce risk by consolidating the unwanted assets into one place.

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Wow ....

And a happy Christmas to you too.

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

where else is this acknowledged?

government?...no

Banks?...no

Eas?..no

MSM?...no

anywhere?

Share this post


Link to post
Share on other sites

Interesting... but it does not get entirely to the root of the problem, which is why some of the investments they were securitising were bad investments in the first place.

Agreed.

It does tell us that the insiders at one of the firms creating them know that they were such bad deals that they didn't want to warehouse even the super senior tranches on their own books as early as 2006. They way to keep the plates spinning was to create a seperate business line and directly bribe the employees in the group.

I agree that this is a symptom and not a cause but it does tell us that at least some of the pain was avoidable.

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Yeah .. but they have been repeating the same "crappy catch phrases" for a long time and if people had listened then, the whole problem might not have existed at all ..

If they had listened in 2003 then none of this would have happened ..

So it's WORTH repeating .. this is not some natural disaster, it's not "One of those things" it was 100% obvious and predictable and was predicted .. banks allowed people to borrow money KNOWING that they were using false information to secure a loan.

Outside this board very few people are even aware that the reason the financial system is collapsing is liar loans ..

Eric may use some interesting fonts and colours but the central concept is a good one ..

LIAR LOANS

Have screwed up the world economy ..

Share this post


Link to post
Share on other sites

Yeah .. but they have been repeating the same "crappy catch phrases" for a long time and if people had listened then, the whole problem might not have existed at all ..

If they had listened in 2003 then none of this would have happened ..

So it's WORTH repeating .. this is not some natural disaster, it's not "One of those things" it was 100% obvious and predictable and was predicted .. banks allowed people to borrow money KNOWING that they were using false information to secure a loan.

Outside this board very few people are even aware that the reason the financial system is collapsing is liar loans ..

Eric may use some interesting fonts and colours but the central concept is a good one ..

LIAR LOANS

Have screwed up the world economy ..

Thanks shed dweller: Couldn't put it better m'self... ;)

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Merry bankers who dealt with the CDO's then >>>

'Two years before the financial crisis hit, Merrill Lynch confronted a serious problem. No one, not even the bank's own traders, wanted to buy the supposedly safe portions of the mortgage-backed securities Merrill was creating.

Bank executives came up with a fix that had short-term benefits and long-term consequences. They formed a new group within Merrill, which took on the bank's money-losing securities. But how to get the group to accept deals that were otherwise unprofitable ?

They paid them. The division creating the securities passed portions of their bonuses to the new group, according to two former Merrill executives with detailed knowledge of the arrangement.

The executives said this group, which earned millions in bonuses, played a crucial role in keeping the money machine moving long after it should have ground to a halt.

"It was uneconomic for the traders" - that is, buyers at Merrill - "to take these things," says one former Merrill executive with knowledge of how it worked.

Within Merrill Lynch, some traders called it a "million for a billion" - meaning a million dollars in bonus money for every billion taken on in Merrill mortgage securities. Others referred to it as "the subsidy." One former executive called it bribery. The group was being compensated for how much it took, not whether it made money.

The group, created in 2006, accepted tens of billions of dollars of Merrill's Triple A-rated mortgage-backed assets, with disastrous results. The value of the securities fell to pennies on the dollar and helped to sink the iconic firm. Merrill was sold to Bank of America, which was in turn bailed out by taxpayers.

What became of the bankers who created this arrangement and the traders who took the now-toxic assets ?

They walked away with millions. Some still hold senior positions at prominent financial firms.

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Couldn't agree more. Nearly everyone on this site already knows what LLs are. There are a handful of new members joining all the time who perhaps don't. They will pick it up soon enough though. There is no reason to repeat the same tedious message over and over, (especially in a big red font.)

This place has lost the intellectual vigour of the previous years, seems nowadays it's the same tires old topics.

"Oh look, I'll start another new thread about sheeple and twigs in vases."

"I know, I'll post a link to an article about a bloke who killed himself because he was in debt. Look, they've got a picture of the widow outside the house. I bet he MEWed that, and I bet that car was on HP".

"Look at me, I've got £500 in the bank for a house deposit, I love renting me, love it. I don't ever want to buy, oooh look interest rates might go up by 0.25% OUR DAY IS COMING COMRADES!!!"

etc...

Merry Christmas too. Sweet dreams, have fun tomorrow.

Share this post


Link to post
Share on other sites

Couldn't agree more. Nearly everyone on this site already knows what LLs are. There are a handful of new members joining all the time who perhaps don't. They will pick it up soon enough though. There is no reason to repeat the same tedious message over and over, (especially in a big red font.)

This place has lost the intellectual vigour of the previous years, seems nowadays it's the same tires old topics.

"Oh look, I'll start another new thread about sheeple and twigs in vases."

"I know, I'll post a link to an article about a bloke who killed himself because he was in debt. Look, they've got a picture of the widow outside the house. I bet he MEWed that, and I bet that car was on HP".

"Look at me, I've got £500 in the bank for a house deposit, I love renting me, love it. I don't ever want to buy, oooh look interest rates might go up by 0.25% OUR DAY IS COMING COMRADES!!!"

etc...

Merry Christmas too. Sweet dreams, have fun tomorrow.

Is it contained though?

Some poor sap puts that in every post.

Share this post


Link to post
Share on other sites

Though the anatomy of a liar loan is pertinent to HPI it is only an indication of the wanton crime that has be endemic in the financial sector, that is the more pressing problem as there is still like political stomach to deal with it. :angry:

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

From now on we will call them the 'loans that dare not speak their name'... :)

Share this post


Link to post
Share on other sites

Will everyone stop banging on about liar loans...

We get it they were part of the problem!

This site used to be good... Now it's just full of dickheads regurgitating the same crappy catch phrases!

Merry Xmas

Couldn't agree more. Nearly everyone on this site already knows what LLs are. There are a handful of new members joining all the time who perhaps don't. They will pick it up soon enough though. There is no reason to repeat the same tedious message over and over, (especially in a big red font.)

This place has lost the intellectual vigour of the previous years, seems nowadays it's the same tires old topics.

"Oh look, I'll start another new thread about sheeple and twigs in vases."

"I know, I'll post a link to an article about a bloke who killed himself because he was in debt. Look, they've got a picture of the widow outside the house. I bet he MEWed that, and I bet that car was on HP".

"Look at me, I've got £500 in the bank for a house deposit, I love renting me, love it. I don't ever want to buy, oooh look interest rates might go up by 0.25% OUR DAY IS COMING COMRADES!!!"

etc...

Merry Christmas too. Sweet dreams, have fun tomorrow.

Personally, I've found the back button on my browser to be quite effective when I've come across sites that are 'beneath me' (if you catch my drift..)

Share this post


Link to post
Share on other sites

Personally, I've found the back button on my browser to be quite effective when I've come across sites that are 'beneath me' (if you catch my drift..)

An interesting take on things.

I am still learning and grateful for the opportunity to do so.

Share this post


Link to post
Share on other sites

An interesting take on things.

I am still learning and grateful for the opportunity to do so.

Same here.

Perhaps my dig was too subtle (it is christmas after all!).

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.